Cost Analysis of Plastic Injection Molds: A Step by Step Guide to Estimate the Final Cost of Plastic Injection Mold

Summary

The Cost Analysis of Plastic Injection Molds is a complete step-by-step guide of the different stages of the cost estimation process. In addition, this book highlights the applicable considerations needed during the selection of plastic injection molds. -This book is recommended for those searching for a straightforward understanding of attaining the final cost of a plastic injection mold.-Readers looking to learn and/or improve their understanding of the technical and financial considerations to assess a cost efficient selection of a plastic injection mold will find this book a valuable resource of information. -This book was born with the expectation of closing the gap between technical and non-technical professionals, who are facing the challenge of understanding the final price for a cost effective plastic injection mold.

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Cost Analysis of Plastic Injection Molds - Carlos Sapene

mold

INTRODUCTION

This book presents a step-by-step methodology to effectively estimate the final cost of plastic injection molds in the industry using basic engineering calculations, financial management analysis, strategic planning, and project management tools in order to assess the financial considerations through technical specifications.

This analysis takes in consideration all the elements and the necessary activities that directly or indirectly affect the final cost of the plastic injection mold, from part design approval up to mass production. In addition, this analysis visits each one of the cross functional activities inside of an organization to develop a tooling specification that meets the company’s requirements for a particular project. This tooling specification is used to estimate the final cost for a plastic injection tool, breaking down each element in the process of making the tool and taking in consideration any required additional activity during the development of the project.

The different approaches from toolmakers to quote a specific tool, the advances in technology, and the lack of required knowledge of the customers for laying out a tooling specification sheet have created major problems to accurately estimate the final cost of plastic injection tools in the industry. Very often these tooling specification sheets do not translate the company’s needs into words that the toolmakers can understand in order to make the mold, thus leading to a project failure.

This book develops a step-by-step methodology to complete a thorough evaluation for a plastic injection tool in order to produce a plastic product for any specific industry, interrelating each step of the process.

The following cost analysis methodology allows for the establishment of effective allocation of resources and scheduling of activities to achieve a plastic product capable of meeting the customer’s expectations within an estimated budget.

CHAPTER 1

OVERVIEW

1.1- Scope:

This book establishes a methodology to accurately estimate the final cost of plastic injection molds. The formulas used throughout this book are taken from previous literature, and will be reference for the reader’s further use. It is not the author intent to develop an in depth mathematical demonstration of these formulas. This book will support the reasoning for using these formulas and will explain the relevance of these calculations through this process to arrive at a successful cost analysis of plastic injection molds. Specifications use throughout this book follows the industry standards and SPI (Society of Plastic Industry) standards. This work assumes that the parts in this study can be made throughout the plastic injection molding process. Begins with a request to make a plastic injection mold for an approved plastic part, and it concludes by mentioning some financial considerations for the building of a mold after a complete cost analysis study is made.

1.2- Influential factors in the cost analysis of the plastic injection molds:

Laying out plastic injection tooling requirements that meet the needs of a particular job is a cross functional activity that requires the involvement of many different departments of the organization. The common critical factors to consider previous to laying out the tooling specifications are the sales forecast, injection machine specifications, part design, plastic material specifications, technological requirements, quality specifications, fitting to matting parts, tooling budget, and method of payment. The analysis and understanding of this preliminary information defines the general guidelines for tooling layout specifications.

This information must be translated in a way that the toolmaker is able to understand. This translation represents a tooling specification sheet that meets the company’s requirements for a specific job. For example, the tooling forecast gives you the estimated lifetime of the project and the estimated production requirements. During the translation for the toolmaker the lifetime of the product and the estimated production requirements will be equivalent to the required lifetime and usage of the tool. This information is one of the critical factors in defining the material to be used for building this specific tool. In addition, the estimated production requirement is one of the critical factors used to select the number of cavities on the tool.

Using new available technology in plastic simulation, tooling design and manufacturing, and project management among others, will give to the final tooling specification the required technological advantage to stay ahead of the competition. The tooling specification must show to the toolmaker the critical requirements for a specific job.

A complete tooling specification will be used to estimate components of the plastic injection tool and predict the amount of work that has to be done to finish this tool. Knowing the required components of the tool and being able to predict the amount of work will allow one to get an accurate estimated cost of the tool and the time involved to complete this job.

The most common additional factors affecting the final price of the mold are tooling transportations, tooling trials, travel expenses, and dimensional evaluations.

The final estimated cost of the mold is compared against previous jobs with similar requirements. These analyses will contribute to establishing the target price and the required time to build a specific tool. This target price and timing are used to evaluate the tooling quotes for this job.

The selection of the possible toolmakers to quote for building a tool is a critical decision that requires a capability evaluation of the toolmaker. The possibility of finding a place with the ability to make a lower cost tool meeting the delivery date is always there. Globalization and the advances in communication such as the Internet in the last decade have allowed companies to compete virtually from any where around the world. When an overseas toolmaker submits a quote for a project, the tooling cost analysis should include risk factors to fairly evaluate the advantages and disadvantages of this option. Sociopolitical stability, economic incentives, language barriers, and business relationships between both countries and organizations are some of the many factors to consider when building molds overseas.

1.3- The economic significance of plastic injection molds:

The ultimate goal of cost analysis of plastic injection tools is to specify a plastic injection mold capable of making a cost effective product during the entire life of the project and determine its final cost.